CAC 40 Falls on Tariff Threats and Middle East Tensions

2026-06-03 15:57 By Isabela Couto 1 min. read

The CAC 40 fell 0.7% to close at 8,150 on Wednesday, tracking broader European losses as investors weighed uncertainty surrounding the US-Iran conflict and fresh US tariff threats.

The US Trade Representative proposed additional duties of up to 12.5% on imports from 60 trading partners, including the EU.

Meanwhile, hostilities in the Gulf intensified after Iranian attacks on Kuwait damaged the country's airport and injured dozens, while the US carried out strikes near the Strait of Hormuz.

Oil prices rose, reviving concerns about energy-driven inflation and higher borrowing costs as bond yields increased.

Financials weakened, with BNP Paribas down 1.3% and AXA losing 1.9%.

Luxury shares also came under pressure, with LVMH shedding 3% and L'Oréal falling 2.2%.

Airbus lost 2%, Safran retreated 1.4%, and Stellantis dropped 4% despite announcing new investments in France.



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